US Annual PCE Inflation Rises to 3.5 Percent in March

The PCE price index rose 0.7% in March as energy costs climbed. Annual inflation reached 3.5%, supporting views that the Fed will keep interest rates steady.

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The United States PCE price index rose 0.7% in March, the largest monthly gain since June 2022. Annual inflation reached 3.5%, up from 2.8% in February, as the war in Iran drove energy costs higher. Sticky inflation likely forces the Federal Reserve to maintain interest rates at current levels well into next year.

Energy Costs Drive Inflation Spike

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